PROTECTION AHD DTOEMNITY CLUBS
THESE clubs, which are known by the short title of " P. & I.
Clubs," are formed by the shipowners in order to secure
cover for risks which are outside the marine insurance
policy, risks which perhaps may be more clearly understood
as third party risks.
"War Risk Clubs" are clubs organized for a like purpose
in war time and are run in a similar way, and although
not operating in peace time, are still kept in existence.
The maintenance of these clubs is secured by way of a
levy upon the amount of tonnage owned by the members of
the club, each making Ms proportionate payment to the
funds of the club.
Shipowners having realized that they have not been able
to secure cover by insurance for certain risks, become mem-
bers of these dubs and by so doing obtain the necessary
security against possible loss, thus avoiding any financial
setback which they are liable to receive if they do not take
advantage of this method.
It must not be assumed that because a shipowner is a
member of one of these dubs he may automatically dip in
his hands and collect his losses; the money which he draws
out must be replaced sooner or later, consequently, the more
the members receive out of these dubs, the more they must
pay into them, to ensure the organization remaining solvent.
Calls are made from time to time by the secretaries of the
clubs; by this method they replenish their funds and, con-
sequently, when several severe losses follow one another
the calls made by the dubs become correspondingly heavy.
The dubs are divided into two sections, namely, Protec-
tion and Indemnity, and usually cover the following risksó
Cases of loss of life or personal injury.
Repatriation of distressed seamen, and any expenses for hospital
and medical attention,